The cost to close our Zoom Video Communications (ZM) spread has dropped below a dime in less than 24 hours.
Let’s book profits now, earning a 4% return on our capital, or 730% annualized.
Current Stock Price: $108.60
Cash in Hand: $0.29
- Buy to close the ZM Jul Week Five (7/29) 85 Put for around $0.18
- Sell to close the ZM Jul Week Five (7/29) 80 Put for around $0.09
- Set initial debit limit at $0.09, but adjust as needed to close today
Profit: $0.20, or $20 per spread